Bitwise Asset Management has filed an S-1 registration with the US Securities and Exchange Commission (SEC) to launch a spot ETF product focusing on Hyperliquid’s HYPE token. The move follows new rule changes and could make HYPE the first DeFi derivatives token to reach Wall Street.
HYPE ETF Structure Outlined, Key Details Still Missing
The proposed product, referred to in filings as the Bitwise Hyperliquid ETF, would directly hold HYPE tokens. Coinbase Custody Trust Company will hold the tokens, with coverage from private insurance providers.
The filing confirms that the ETF will support both cash and in-kind creations and redemptions, meaning large investors can swap ETF shares for tokens directly. It also states that the product will not use leverage or derivatives.
At this stage, Bitwise has not disclosed the exchange, ticker, or fee structure for the ETF. These details are typically finalized later in the SEC review process.
The move comes shortly after the SEC approved new generic listing standards for spot commodity ETFs. The change reduces the review window for eligible products from more than 200 days to about 75 days.
However, HYPE does not currently qualify for accelerated approval because there are no Hyperliquid futures contracts registered with the Commodity Futures Trading Commission (CFTC). That means the ETF will go through the standard, longer review.
For the product to list, Bitwise must also file a Form 19b-4 with the SEC. This filing triggers the formal review process, which can last up to 240 days.
Did You Know? It took the SEC more than 10 years to approve the first US spot Bitcoin ETF after repeated rejections.
Hyperliquid Faces Pressure From Competition and Unlocks
Hyperliquid is a Layer-1 blockchain built for decentralized derivatives trading, especially perpetual futures. The HYPE token powers the platform, enabling fees, incentives, and governance. The filing lands as Hyperliquid faces rising competition. Rival protocol Aster has recently surpassed Hyperliquid in both trading volume and open interest.
At the same time, HYPE is facing a flood of new supply. Reports show that around 237.8 million tokens are set to vest starting in November, adding roughly $500 million in monthly selling pressure. Current buyback programs cover only about 17% of that figure, raising fears of oversupply. Pointing to such major unlock, Former BitMEX CEO Arthur Hayes, who was once a vocal supporter of Hyperliquid, has sold his entire HYPE position for about $5.1 million.
Hayes had previously predicted the token could rise more than 100× by 2028. But he pointed to the upcoming unlock and the limited buyback coverage as reasons for concern.
Despite the ETF announcement, HYPE’s price fell 1.5% on the day and 24% over the past week. The token is currently trading near $42.
